Note 15 - Concentrations and Credit Risk

6 Months Ended

Oct. 31, 2016

Notes

Note 15 - Concentrations and Credit Risk

NOTE 15 - CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

For the three months ended October 31, 2016 and 2015, customers accounting for 10% or more of the Company's revenue were as follows:

	Net Sales
	For the three months ended October 31, 2016		For the three months ended October 31, 2015
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Qufu Shengwang Import and Export Trade Co., Ltd(1)	0	35.8%	0	25.4%
Shandong Yidatong Enterprise Service Co., Ltd	0	13.9%	0	0
Total	0	49.7%	0	25.4%

For the six months ended October 31, 2016 and 2015, customers accounting for 10% or more of the Company's revenue were as follows:

	Net Sales
	For the six months ended October 31, 2016		For the six months ended October 31, 2015
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Qufu Shengwang Import and Export Trade Co., Ltd(1)	0	35.2%	0	56.0%
Shandong Yidatong Enterprise Service Co., Ltd	0	17.6%	0	0
Guangdong Tengjun Veterinary Medicine Co., Ltd	0	0	13.2%	0
Beijing Haomiao Huifeng Pharmaceutical Co., Ltd	0	0	15.1%	0
Total	0	52.8%	28.3%	56.0%

(1)           Qufu Shengwang Import and Export Co., Ltd is a related party, an entity owned by Mr. Laiwang Zhang.

(ii)    Vendor Concentrations

For the three months ended October 31, 2016 and 2015, suppliers accounting for 10% or more of the Company's purchase were as follows:

	Net Purchases
	For the three months ended October 31, 2016		For the three months ended October 31, 2015
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Dongtai Yandun Stevia Corp	0	35.6%	0	0
Juiqian Shengwang Corp.	0	0	0	32.7%
Zhucheng Haotian Pharmaceutical Co., Ltd	0	29.0%	0	0
Total	0	64.6%	0	32.7%

For the six months ended October 31, 2016 and 2015, suppliers accounting for 10% or more of the Company's purchase were as follows:

	Net Purchases
	For the six months ended October 31, 2016		For the six months ended October 31, 2015
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Gansu Fanzhi Biology Technology Co., Ltd	0	0	12.0%	0
Sishui Ruijin Pharmaceutical Co., Ltd	0	0	22.1%	0
Dongtai Yandun Stevia Corp	0	16.7%	0	22.8%
Dongtai Jiangrongfeng Stevia Corp	0	15.4%	0	0
Juiqian Shengwang Corp.	0	0	0	16.7%
Zhucheng Haotian Pharmaceutical Co., Ltd	0	23.5%	0	11.5%
Total	0	55.6%	34.1%	51.0%

(iii)    Credit Risk

Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. At October 31, 2016, we had $347,831 of cash balance held in PRC banks, and $73,970 with banks in the United States. As a result, cash held in PRC financial institutions is not insured. We have not experienced any losses in such accounts through October 31, 2016.

Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk.